Korean auto giant Hyundai, which has fared well in Indian market over the last few years, has reported a marginal drop in its revenue during the period from January 2012 to September 2012. An interesting fact here is that the sales of Hyundai vehicles in India has gone up by 4 per cent in the said period.
A presentation on its website suggests that Hyundai Motor Company (HMC) has revenues of 3.861 trillion South Korean Won (KRW) during the first nine months of 2012. During this time period, Hyundai sold a total of 478,902 units which was higher by 4 per cent as compared to 461,697 during the same time last year. HMC remarked on the future prospects of the company, “Competition among major automakers stands to increase, especially due to slowing demands from emerging markets such as China and India, once considered major drivers of the auto industry.”
Although figures suggest that there has been a fall in the revenue, the net profit of HMC has gone uphill at 7.164 trillion KRW when compared to last year's net profit, which was 6.102 trillion KRW, during the time period of January to September. The rise of 17.40% in the net profit clearly suggests that Hyundai has nothing to worry about as it has found a stable foothold in the passenger car section.
The company further commented, "Strong overseas sales made up for sluggish demands in the Korean market, resulting in the overall Y-o-Y increase. Enhanced brand value and increased average selling price especially drove profit margin growth."
There are more figures to talk about, and likewise, all in favour of HMC. For the second quarter of fiscal year 2012, HMC has witnessed a 3.65% rise in its sales revenue. This year, the company was able to make sales revenues of 19.646 trillion KRW during the second quarter as against 18.954 trillion KRW during the same time in 2011. The net profit has also seen a major jump of 12.93% to 2.166 trillion KRW as compared to 1.918 trillion KRW.
Hyundai commented on future prospect, “Hyundai forecasts that business uncertainties in the auto industry will continue through the fourth quarter to next year. Even so, Hyundai will achieve its sales target through various efforts such as offering better quality, differentiated marketing and improved dealer networks.”
Although the marginal fall is not much of a worry for the car manufacturer, it has surely discussed and taken into consideration the pros and cons of this observation. Hyundai has managed to capture a major portion of the hatchback section with its popular cars like Eon, i10, i20 and Santro. Verna and, more recently, Elantra have ensured that the car maker does not lag in sedan class as well. All in all, times are favourable for Hyundai and the company does not wish to take chances, even if the fall depicted in sales or revenues is marginal.
